Welcome, Guest |
Login |
With the banking sectors in two of the four BRIC markets — Brazil and China, facing short and long-term systemic challenges, Indian lenders have held up better than their counterparts, only to falter in the last few weeks.
Once considered “market friendly,” Brazilian President Dilma Rousseff has started to unnerve investment banks and drive the Bovespa into a deep correction. Expect downgrades and maybe a few bottom feeding opportunities.
These are exciting times for a market that has lost 9.5% over the last two years between a sagging currency and a drumbeat of setbacks for the local heavyweights. That’s right, we’re talking about Brazil.
Brazil’s largest independent investment bank BTG Pactual is set to offer the world’s fourth largest initial public offering for the year 2012 in Brazil this week. The bank is looking to raise around $2 billion in the oversubscribed offering.
U.S. futures are ticking higher suggesting a possible reversal of fortune at the open. The NIKKEI closed down 0.78% while HIS and China closed up 0.26% and 0.01% respectively.
Stocks around the emerging world have had a tough week, but the Brazilian financial sector has been lagging the rest of the Bovespa, not to mention banks elsewhere. There’s a good reason for this, and it hasn’t been reported widely.
